Network Rail executives are seeking long-term bonuses of almost £12 million on
top of two other reward schemes for bosses at the taxpayer-funded company.

The plans sparked a new row last night, as Network Rail directors only agreed five months ago to waive their annual bonuses during the public spending cuts.

It emerged this week that the rail operator wants to pay £1.7 million to directors for their work over the last three years and £900,000 in “golden handcuffs” to make sure three bosses stay until 2014.

Now the company has confirmed it is also seeking permission to pay executives up to £11.7 million in future, prompting calls for Justine Greening, the Transport Secretary, to intervene.

The company is backed with £4 billion of taxpayer money and will also benefit from fares increasing up to 11 per cent this year.

Under the plans, a group of up to six bosses, including chief executive Sir Dave Higgins, would share up to £2.4 million every year for five years if they hit performance targets.

“In the current economic climate, and with a performance that is far from satisfactory, it is hopelessly out of touch for Network Rail to believe that an £11.7m bonus scheme for senior managers is acceptable,” she said.

“Passengers are facing annual fare rises of 11 per cent a year at a time when people are really struggling to make ends meet. This bonus culture, greed and free and easy attitude to taxpayers money must end.”

The company’s pay plans have been criticised by the rail regulator, which is not yet convinced they offer value for money for the taxpayer.

A spokesman for the company said the bonuses are “only hypothetical” and would depend on management hitting certain targets.

Network Rail won praise in February when the company’s leadership agreed to forgo bonuses of more than £300,000 each.

They agreed to put the cash towards improving safety on the railways. Two months later, the operator was fined £4million over the Grayrigg rail disaster that killed one person and seriously injured 28 others in Cumbria in 2007.

The company is also under pressure over punctuality. It is in danger of a £42million fine unless 92 per cent of train services run on time. Currently it is managing only 89.2 per cent.